Skip to main content
SpringerLink
Log in

Effective Corporate Codes of Ethics: Perceptions of Code Users

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

The study examines employee, managerial, and ethics officer perceptions regarding their companies’ codes of ethics. The study moves beyond examining the mere existence of a code of ethics to consider the role that code content and code process (i.e. creation, implementation, and administration) might play with respect to the effectiveness of codes in influencing behavior. Fifty-seven in-depth, semi-structured interviews of employees, managers, and ethics officers were conducted at four large Canadian companies. The factors viewed by respondents to be important with respect to code effectiveness include: provisions of examples; readability; tone; relevance; realism; senior management support; training; reinforcement; living up to standards; reporting requirement; anonymous phone line; communicating violations; and enforcement. The factors found to be potentially important include: justification for provisions; employee involvement; and sign-off requirements. Factors found not to be important include: objectives for the code; prior distribution; testing; and relating one’s performance review to compliance with the code.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • J. S. Adams A. Tashchian T. H. Shore (2001) ArticleTitle‘Codes of Ethics as Signals for Ethical Behavior’ Journal of Business Ethics 29 IssueID3 199–211

    Google Scholar 

  • I. P. Akaah E. A. Riordan (1989) ArticleTitle‘Judgments of Marketing Professionals About Ethical Issues in Marketing Research: A Replication and Extension’ Journal of Marketing Research 26 112–120

    Google Scholar 

  • J. Allen D. Davis (1993) ArticleTitle‘Assessing Some Determinant Effects of Ethical Consulting Behavior: The Case of Personal and Professional Values’ The Journal of Business Ethics 12 449–458

    Google Scholar 

  • S. Arndt (1990) ArticleTitle‘Discussion of Ethics Needed’ National Underwriter (Life,Health/Financial Services) 93 IssueID43 3–13

    Google Scholar 

  • Austin, R. W.: 1961, ‘Code of Conduct for Executives’, Harvard Business Review 53, (September/October).

  • J. L. Badaracco SuffixJr. A. P. Webb (1995) ArticleTitle‘Business Ethics: A View From the Trenches’ California Management Review 37 IssueID2 8–28

    Google Scholar 

  • G. C. S. Benson (1989) ArticleTitle‘Codes of Ethics’ The Journal of Business Ethics 8 305–319

    Google Scholar 

  • Berenbeim, R. E.: 1988, ‘Ethics Codes and Educational Programs’, Security (October) 91–97.

  • R. E. Berenbeim (1999) Global Corporate Ethics Practices: A Developing Consensus, The Conference Board New York

    Google Scholar 

  • P. Brandl M. Maguire (2002) ArticleTitle‘Codes of Ethics: A Primer on their Purpose, Development, and Use’ The Journal for Quality and Participation 25 IssueID4 8–12

    Google Scholar 

  • D. J. Brass K. D. Butterfield B. C. Skaggs (1998) ArticleTitle‘Relationships and Unethical Behavior: A Social Network Perspective’ Academy of Management Review 23 IssueID1 14–31

    Google Scholar 

  • A. P. Brief J. M. Dukerich P. R. Brown J. F. Brett (1996) ArticleTitle‘What’s Wrong with the Treadway Commission Report? Experimental Analyses of the Effects of Personal Values and Codes of Conduct on Fraudulent Financial Reporting’ Journal of Business Ethics 15 183–198

    Google Scholar 

  • E. F. Byrne (2002) ArticleTitle‘Business Ethics: A Helpful Hybrid In Search of Integrity’ Journal of Business Ethics 37 IssueID2 121–133

    Google Scholar 

  • V. J. Callan (1992) ArticleTitle‘Predicting Ethical Values and Training Needs in Ethics’ Journal of Business Ethics 11 761–769

    Google Scholar 

  • R. Chatov (1980) ArticleTitle‘What Corporate Ethics Statements Say’ California Management Review 22 IssueID4 20–29

    Google Scholar 

  • L. B. Chonko S. D. Hunt (1985) ArticleTitle‘Ethics and Marketing Management: An Empirical Examination’ Journal of Business Research 13 339–359

    Google Scholar 

  • M. A. Clark S. L. Leonard (1998) ArticleTitle‘Can Corporate Codes of Ethics Influence Behavior?’ Journal of Business Ethics 17 IssueID6 619–630

    Google Scholar 

  • M. B. E. Clarkson M. C. Deck (1992) Effective Codes of Ethics: A Stakeholder Approach The Clarkson Centre For Business Ethics Toronto, Ontario

    Google Scholar 

  • CNN: 2002, June 9, ‘Text of President Bush’s Speech’, New York, http://www.cnn.com/2002/ALLPOLITICS/07/09/bush.transcript/.

  • D. R. Cressey C. A. Moore (1983) ArticleTitle‘Managerial Values and Corporate Codes of Ethics’ California Management Review 25 IssueID4 53–77

    Google Scholar 

  • J. W. Cresswell (1994) Research Design: Qualitative & Quantitative Approaches Sage Thousand Oaks, CA

    Google Scholar 

  • D. M. Driscoll W. M. Hoffman E. S. Petry (1995) Ethical Edge MasterMedia Limited New York

    Google Scholar 

  • Ethics Resource Center: 1990a, Creating a Workable Company Code of Ethics (Washington, D.C).

  • Ethics Resource Center and The Behavior Research Center: 1990b, Ethics Policies and Programs in American Business: Report of a Landmark Survey of U. S. Corporations (Washington, D.C).

  • Ethics Resource Center: 1994, Ethics in American Business: Policies, Programs and Perceptions (Washington, D.C).

  • B. J. Farrell D. M. Cobbin (2000) ArticleTitle‘A Content Analysis of Codes of Ethics from Fifty-Seven National Accounting Organisations’ Business Ethics: A European Review 9 IssueID3 180–190

    Google Scholar 

  • O. C. Ferrell J. Fraedrich L. Ferrell (2002) Business Ethics: Ethical Decision Making and Cases Houghton Mifflin Company Boston, MA

    Google Scholar 

  • B. J. Farrell D. M. Cobbin H. M. Farrell (2002) ArticleTitle‘Can Codes of Ethics Really Product Consistent Behaviours?’ Journal of Managerial Psychology 17 IssueID6 468–490

    Google Scholar 

  • O. C. Ferrell L. Gresham (1985) ArticleTitle‘A Contingency Framework for Understanding Ethical Decision Making in Marketing’ Journal of Marketing 49 87–96

    Google Scholar 

  • O. C. Ferrell S. J. Skinner (1988) ArticleTitle‘Ethical Behavior and Bureaucratic Structure in Marketing Research Organizations’ Journal of Marketing Research 25 103–109

    Google Scholar 

  • R. C. Ford B. Gray R. Landrum (1982) ArticleTitle‘Do Organizational Codes of Conduct Really Affect Employees’ Behavior?’ Management Review 71 53

    Google Scholar 

  • R. C. Ford W. D. Richardson (1994) ArticleTitle‘Ethical Decision Making: A Review of the Empirical Literature’ Journal of Business Ethics 13 205–221

    Google Scholar 

  • Gellerman, S. W.: 1989, ‘Managing Ethics From the Top Down’, Sloan Management Review (Winter), 73–79.

  • E. Gibbs (2003) ArticleTitle‘Developing an Effective Code of Conduct’ Financial Executive 19 IssueID4 40–41

    Google Scholar 

  • Grunfeld, R. S.: 2002, November 18, ‘Enforcing A Written Code of Ethics’, New York Law Journal, http://www.clm.com/pubs/pub-1129630_1.html.

  • C. E. Harris (1978) ArticleTitle‘Structuring a Workable Business Code of Ethics’ University of Florida Law Review 30 310–382

    Google Scholar 

  • W. H. Hegarty H. P. Sims SuffixJr. (1979) ArticleTitle‘Organizational Philosophy, Policies, and Objectives Related to Unethical Decision Behavior: A Laboratory Experiment’ Journal of Applied Psychology 64 IssueID3 331–338

    Google Scholar 

  • R. E. Hite J. A. Bellizzi C. Faser (1988) ArticleTitle‘A Content Analysis of Ethical Policy Statement Regarding Marketing Activities’ Journal of Business Ethics 7 771–776

    Google Scholar 

  • L. T. Hosmer (1991) The Ethics of Management (2nd Ed.) Irwin Inc Boston, MA

    Google Scholar 

  • S. D. Hunt L. B. Chonko J. B. Wilcox (1984) ArticleTitle‘Ethical Problems of Marketing Researchers’ Journal of Marketing Research 21 309–324

    Google Scholar 

  • Jordan, K. S.: 1995, ‘Designing and Implementing a Corporate Code of Conduct in the Context of an ‘Effective’ Compliance Program’, In Corporate Counsel’s Guide to Business Ethics Policies (Business Laws, Chesterland, Ohio), 301–314.

  • M. Kapstein (2004) ArticleTitle‘Business Codes of Multinational Firms: What Do They Say?’ Journal of Business Ethics 50 IssueID1 13–31

    Google Scholar 

  • A. Kitson (1996) ArticleTitle‘Taking the Pulse: Ethics and the British Cooperative Bank’ The Journal of Business Ethics 15 1021–1031

    Google Scholar 

  • KPMG: (2000): Ethics Survey: Mangaging for Ethical Practice (Toronto, Ontario).

  • Lane, M. R.: 1991, ‘Improving American Business Ethics in Three Steps,’ CPA Journal (February), 30–34.

  • G. R. Laczniak E. J. Inderrieden (1987) ArticleTitle‘The Influence of Stated Organizational Concern Upon Ethical Decision Making’ Journal of Business Ethics 6 297–307

    Google Scholar 

  • M. Lefebvre J. B. Singh (1992) ArticleTitle‘The Content and Focus of Canadian Corporate Codes of Ethics’ Journal of Business Ethics 11 799–808

    Google Scholar 

  • J. L’Etang (1992) ArticleTitle‘A Kantian Approach to Codes of Ethics’ The Journal of Business Ethics 11 737–744

    Google Scholar 

  • J. M. Liedtka (1992) ArticleTitle‘Exploring Ethical Issues Using Personal Interviews’ Business Ethics Quarterly 2 IssueID2 161–181

    Google Scholar 

  • C. M. Mathews (1987) ‘Codes of Ethics: Organizational Behavior and Misbehavior’ W. F. Frederick (Eds) Research in Corporate Social Performance and Policy JAI Press Greenwich, CT 107–130

    Google Scholar 

  • R. H. McAdams (1997) ArticleTitle‘The Origin, Development, and Regulation of Norms’ Michigan Law Review 96 IssueID2 338–433

    Google Scholar 

  • D. L. McCabe L. K. Trevino K. D Butterfield (1996) ArticleTitle‘The Influence of Collegiate and Corporate Codes of Conduct on Ethics-Related Behavior in the Workplace’ Business Ethics Quarterly 6 IssueID4 461–476

    Google Scholar 

  • M. Messmer (2003) ArticleTitle‘Does Your Company Have a Code of Ethics?’ Strategic Finance 84 IssueID10 13–14

    Google Scholar 

  • M. P. Miceli J. P. Near (1988) ArticleTitle‘Individual and Situational Correlates of Whistleblowing’ Personnel Psychology 41 267–281

    Google Scholar 

  • M. P. Miceli J. P. Near C. R. Schwenk (1991) ArticleTitle‘Who Blows the Whistle and Why?’ Industrial and Labor Relations Review 45 113–130

    Google Scholar 

  • E. A. Molander (1987) ArticleTitle‘A Paradigm for Design, Promulgation and Enforcement of Ethical Codes’ Journal of Business Ethics 6 619–631

    Google Scholar 

  • I. D. Montoya A. J. Richard (1994) ArticleTitle‘A Comparative Study of Codes of Ethics in Health Care Facilities and Energy Companies’ Journal of Business Ethics 13 713–717

    Google Scholar 

  • P. E. Murphy (1988) ArticleTitle‘Implementing Business Ethics’ Journal of Business Ethics 7 907–915

    Google Scholar 

  • Murphy, P. E.: 1989, ‘Creating Ethical Corporate Structures’, Sloan Management Review (Winter), 81–87.

  • P. E. Murphy (1995) ArticleTitle‘Corporate Ethics Statements: Current Status and Future Prospects’ The Journal of Business Ethics 14 727–740

    Google Scholar 

  • P. R. Murphy J. E. Smith J. M. Daley (1992) ArticleTitle‘Executive Attitudes, Organizational Size and Ethical Issues: Perspectives on a Service Industry’ The Journal of Business Ethics 11 11–19

    Google Scholar 

  • A. Nijhof S. Cludts O. Fisscher A. Laan (2003) ArticleTitle‘Measuring the Implementation of Codes of Conduct. An Assessment Method Based on a Process Approach of the Responsible Organisation’ Journal of Business Ethics 45 65–78

    Google Scholar 

  • Paine, L. S.: 1994, ‘Managing for Organizational Integrity’, Harvard Business Review (March/April), 106–117.

  • S. R. Perry (2002) ArticleTitle‘Method and Principle in Legal Theory’ The Yale Law Journal 111 IssueID7 1757–813

    Google Scholar 

  • M. A. Pierce J. W. Henry (1996) ArticleTitle‘Computer Ethics: The Role of Personal, Informal, and Formal Codes’ Journal of Business Ethics 15 425–437

    Google Scholar 

  • H. L. Pitt K. A. Groskaufmanis (1990) ArticleTitle‘Minimizing Corporate Civil and Criminal Liability: A Second Look at Corporate Codes of Conduct’ The Georgetown Law Journal 78 1559–1654

    Google Scholar 

  • C. A. Raiborn D. Payne (1990) ArticleTitle‘Corporate Codes of Conduct: A Collective Conscience and Continuum’ Journal of Business Ethics 9 879–889

    Google Scholar 

  • D. M. Randall A. M. Gibson (1990) ArticleTitle‘Methodology in Business Ethics Research: A Review and Critical Assessment’ The Journal of Business Ethics 9 457–471

    Google Scholar 

  • Rich, A. J., C. S. Smith and P. H. Mihalek: 1990, ‘Are Corporate Codes of Conduct Effective?’ Management Accountant September, 34–35.

  • D. C. Robertson B. B. Schlegelmilch (1993) ArticleTitle‘Corporate Institutionalization of Ethics in the United States and Great Britain’ Journal of Business Ethics 12 301–312

    Google Scholar 

  • Sanderson, G. R. and I. I. Varner: 1984, ‘What’s Wrong With Corporate Codes of Conduct?’ Management Accounting (July), 28–31.

  • R. L. Sims J. P. Keenan (1998) ArticleTitle‘Predictors of External Whistleblowing: Organizational and Intrapersonal Variables’ Journal of Business Ethics 17 IssueID4 411–421

    Google Scholar 

  • Singhapakdi, A. and S. J. Vitell: 1990, ‘Marketing Ethics: Factors Influencing Perceptions of Ethical Problems and Alternatives’, Journal of Macromarketing (Spring), 4–18.

  • M. J. Somers (2001) ArticleTitle‘Ethical Codes of Conduct and Organizational Context: A Study of the Relationship Between Codes of Conduct, Empoyee Behavior and Organizational Values’ Journal of Business Ethics 30 185–195

    Google Scholar 

  • Stevens, B.: 1992, ‘Corporate Ethical Codes: A Study in Competing Values’, Doctoral Dissertation, Wayne State University.

  • B. Stevens (1994) ArticleTitle‘An Analysis of Corporate Ethical Code Studies: Where Do We Go From Here?’ The Journal of Business Ethics 13 63–69

    Google Scholar 

  • Sweeney, R. B. and H. L. Siers: 1990, ‘Survey: Ethics in America’, Management Accounting (June), 34–40.

  • Townley, P.: 1992, Spring, ‘Business Ethics...An Oxymoron?’, Canadian Business Review (Spring), 35–37.

  • L. Trevino (1986) ArticleTitle‘Ethical Decision Making in Organizations: A Person-Situation Interactionist Model’ Academy of Management Review 11 601–617

    Google Scholar 

  • L. Trevino (1992) ArticleTitle‘The Social Effects of Punishment in Organizations: A Justice Perspective’ The Academy of Management Review 17 IssueID4 647

    Google Scholar 

  • L. Trevino K. A. Nelson (1995) Managing Business Ethics Wiley New York

    Google Scholar 

  • L. Trevino G. R. Weaver D. G. Gibson B. L. Toffler (1999) ArticleTitle‘Managing Ethics and Legal Compliance: What Works and What Hurts’ California Management Review 41 IssueID2 131–151

    Google Scholar 

  • United States Sentencing Commission. (1991). Federal Sentencing Guidelines for Organizations, http://www.ussc.gov/2002guid/tabconchapt8.htm.

  • G. R. Weaver (1993) ArticleTitle‘Corporate Codes of Ethics: Purpose, Process and Content Issues’ Business and Society 32 IssueID1 44–58

    Google Scholar 

  • W. A. Weeks J. Nantel (1992) ArticleTitle‘Corporate Codes of Ethics and Sales Force Behavior: A Case Study’ The Journal of Business Ethics 11 753–760

    Google Scholar 

  • B. J. White B. R. Montgomery (1980) ArticleTitle‘Corporate Codes of Conduct’ California Management Review 23 IssueID2 80–87

    Google Scholar 

  • WorldCom: 2003, ‘Report of Investigation by the Special Investigative Committee of the Board of Directors’, (June 9)

  • T. R. Wotruba L. B. Chonko T.W. Loe (2001) ArticleTitle‘The Impact of Ethics Code Familiarity on Manager Behavior’ Journal of Business Ethics 33 59–69

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Schulich School of Business, York University, 4700 Keele Street, Toronto, Ontario, Canada, M3J 1P3

    Mark S. Schwartz

Authors
  1. Mark S. Schwartz
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Mark S. Schwartz.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Schwartz, M.S. Effective Corporate Codes of Ethics: Perceptions of Code Users. J Bus Ethics 55, 321–341 (2004). https://doi.org/10.1007/s10551-004-2169-2

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-004-2169-2

Keywords

Search

Navigation